Need advice, 1st time car and it will be financed.

**shemcristobal** · October 21st, 2014 04:46 AM

Have everything documented in a quote from dealer, including all the freebies for the car you want.

Then apply for bank approval. If you talk directly to the bank you'll get to negotiate for lower down payment and monthly amortization. {In-house financing is a sure way to go (just like others said) but costs you more. Well weigh in if you can suck up the costs versus the relative difficulty of pushing a bank approve a car loan plus finding that dealer to agree that your not in-house financing it.}

Once you get Bank approval, negotiate with the dealer. The dealer will follow the terms and conditions of the bank anyhow.

Once dealer agrees, pay the reservation fee (deductible from your downpayment) and when unit is available for release, dealer will instruct you to process the bank documents, prepare the manager's check (sum of all bank fees, remaining downpayment, LTO) payable to the dealer, coordinate bank P.O. submission to dealer, then pick up of your car follows.

For an 875K car, you would likely shell out around 160K; and a monthly ammortization of close to 16K for 60 months (will be deducted from your bank account - no more cheques to issue).

Now it really boils down how much you can cash out upfront.

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**gh0str1d3r** · October 21st, 2014 09:05 AM

Thanks for the replies

Very informative.

I'll try out the banks for lower interest. But if the DP is still that high compared to the "all-in" promos of dealer, I'll have to settle with the dealers and find the lowest monlthy or interest. I really need a car for daily use, home to office and week end rides

Which bank offers the best car loan? and also which approve fast?

Is there better promos when it comes to December (Christmas), dealers have Christmas promos right? should I wait for that, what will they offer. Currently still using my sister car temporarily.

**shemcristobal** · October 21st, 2014 11:56 AM

Originally Posted by gh0str1d3r

Which bank offers the best car loan? and also which approve fast?

Is there better promos when it comes to December (Christmas), dealers have Christmas promos right? should I wait for that, what will they offer. Currently still using my sister car temporarily.

Good question and to answer that you have best chance with your own bank right now. I assume your salary is creditted to some bank and that bank is the best candidate as they already have record of your income history.

If you have credit cards, it is best to have a good credit standing with them.

Promos are good but will delay you or might not include the car of your interest.

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**larry0609** · October 21st, 2014 12:14 PM

Toyota Pasig branch is now having their Christmas promo. You might want to check their website to find out more about it.

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**Lew_Alcindor** · October 21st, 2014 12:41 PM

Originally Posted by gh0str1d3r

Sorry forgot to mention, in house financing po from the dealer. Can't afford full 20% down. Is "in-house" a bad idea? I know it's a little bit higher monthly than through bank. I can also handle the monthly of in house but for 5years. I badly need a car. Is there other bad thing about "in-house" that dealer is not mentioning? It's there hidden charges that will surprise me on the monthly payments through inn house?

Sorry if my question offends you.

How badly do you need a car, and a brand new one?

Low DP is tempting but my guess is that most repossessed cars were acquired through "Low DP" promos becaue=se these buyers are not aware of the long term financial implications.

**_Qwerty_** · October 21st, 2014 12:47 PM

meron na ding mga in house na mababa interest.. example yung nakita kong Kia Carens sa isang mall.. this is from KIA caloocan yata..

SRP = 1.275M
ALL in DP - 30T
Monthly for 60 months = 26T
Total Payment = 1.59M

Interest = 315T or 24.7% or 4.94% per annum na lang din

**khalee** · October 21st, 2014 02:44 PM

Originally Posted by Lew_Alcindor

Low DP is tempting but my guess is that most repossessed cars were acquired through "Low DP" promos becaue=se these buyers are not aware of the long term financial implications.

Agree with this. You also have to consider, gas, parking, PMS etc when owning car. So weigh what works for you.

I just got my car a week ago through direct bank financing. High DP works better for me than paying a high monthly amortization as I also have other monthly dues.

If you're going tru in house, try haggling with your dealer. Tell them the banks offer (you can use banks auto loan calculator to get an idea how much it would cost) then ask your dealer if they can offer you the same or somewhat close to it.

Goodluck on your car hunting sir!

**Lew_Alcindor** · October 21st, 2014 03:08 PM

Originally Posted by _Qwerty_

meron na ding mga in house na mababa interest.. example yung nakita kong Kia Carens sa isang mall.. this is from KIA caloocan yata..

SRP = 1.275M
ALL in DP - 30T
Monthly for 60 months = 26T
Total Payment = 1.59M

Interest = 315T or 24.7% or 4.94% per annum na lang din

Totooa ba ito? Mas mataas pa interest kesa sa car loan namin sa banko hehehe

**Scuttle** · October 25th, 2014 07:35 AM

Right now, im in similar scenario. Approved na ung loan ko sa 2 banks, bakit naging 2, kala ko kasi denied ako dun sa una kasi 2 days processing daw, inabot ng 2 weeks. Yung 2nd bank ko same day na approved. In the end 2 yung approved ko. Problem ko, yubg 1 bank nagissue agad ng PO, me impact ba yun sa decision making ko? Tali na ba ako nun? What if mas ok pala ang offer ng 2nd bank diko pa kasi nakikita yung details ng 2nd bank.

Bank loans po to hindi inhouse btw.

**EQAddict** · October 25th, 2014 12:43 PM

Low DP schemes equate to HIGH monthly payments. If you cant afford the DP, I seriously suggest you think long and hard about committing to a 5 year loan. Remember the monthly will be disproportionately high, then you have gas, parking expenses, maintenance, yearly insurance coverage, etc.

Make sure the monthly payments of the car are less than a fourth of your net take home pay. If it isnt you are in for some financial pressure and pain for a long time.

And its a mistake to think that you can just sell the car aka "assume balance" if you have problems paying. Your low DP and high monthly interest expenses ( less of your payments go to the principal) would mean you will have much less equity in the car. So factor in the depreciation hit, you will have to shell out a lot more money just to get rid of a car you cant keep.

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